Los Angeles Wildfires Expected To Become Most Expensive Disaster In US History

Los Angeles: The wildfires currently raging across Los Angeles County have already caused massive destruction, with at least 11 people confirmed dead and more than 12,000 homes and structures gutted in the blaze. According to the US media reports, the wildfires, which began earlier this week, are still out of control and are expected to be among the costliest natural disasters in the history of the United States. 

As per the reports, early estimates suggest that the financial damage from the wildfires could be between USD 135 billion and USD 150 billion. This would make it the most expensive wildfire in US history, surpassing previous records. Notably, the 2018 Camp Fire in California's Paradise, caused USD 12.5 billion in damages, which was considered the most costly wildfire before this.

The fires have impacted densely populated areas, including high-value real estate regions such as Malibu and Pacific Palisades, home to many wealthy individuals and celebrities. This unique combination of factors has led to the prediction that the fires could cause unprecedented financial damage.

Economic Impact

The economic toll is not just from destroyed homes and businesses. Experts also include the costs of lost wages, healthcare expenses, infrastructure damage, and interruptions to the supply chain. AccuWeather’s chief meteorologist Jonathan Porter explained that these wildfires could represent up to 4 percent of California's annual GDP.

Although it’s still too early to have a full tally of the financial damage, experts are warning that the final cost could increase rapidly as the fires remain largely uncontained.

Unusual Wildfire Disaster

While California is no stranger to wildfires, this disaster is being termed to be an unusual one. Most of the major wildfires in the state have been in less densely populated inland areas, causing lower overall damage. However, the current fires are affecting high-end properties in heavily populated areas, leading to much higher costs.

According to a report by Moody’s, the combination of intense fires and their location in wealthy neighbourhoods means that this could be the most expensive wildfire disaster in US history. The final economic toll will likely take months to fully assess.

Ongoing Crisis

The wildfires continue to burn, and emergency responders are working tirelessly to control the flames. The scale and impact of these fires suggest that the disaster is far from over. With many people still displaced and a large area still at risk, the human and economic costs of this tragedy will continue to rise.

This will be the costliest wildfire in California's modern history and also very likely the costliest wildfire in US modern history, because of the fires occurring in the densely populated areas around Los Angeles with some of the highest-valued real estate in the country, said Jonathan Porter, the private firm's chief meteorologist.

“We’re in the very early stages of this disaster,” said Porter, stating that the full extent of the damage is yet to be seen.